Latest Multifamily Real Estate Offering Provides Value-Add Opportunity With 14.2% Target Annual Returns

The real estate investment platform RealCrowd has announced a new offering for a value-add opportunity on a newly built multifamily complex in Princeton, TX, with a target internal rate of return (IRR) of 14.2%.

This deal features a newly built, class A asset that will be purchased below its replacement cost. The sponsor also notes that since the property was put under contract nine months ago, prices in the market have already started to increase.

The deal also features a projected 5% stabilized cap rate once the property is fully leased.

Investment Highlights

Princeton Texas has seen a great deal of growth over the last few years. This seemed to have been due to a spillover effect from the growth in the Dallas/ Fortworth area. Market conditions make the projected 5% stabilized cap rate look very attractive compared to 3-4% cap rate that comparable assets are currently trading for.

The property’s 156 units are split up between four main buildings and feature all of the high-end amenities you would expect in a newly built class A facility. The developer is currently working with a third-party company to handle the pre-leasing and anticipates delivering the asset with 15% occupancy at closing.

• Minimum investment: $50,000
• Target IRR: 14.2%
• Target equity multiple: 1.79x
• Target cash-on-cash return: 8.2% in 3 years
• Target investment term: 5 Years

View offering details on RealCrowd

Deal Sponsor

This offer’s sponsor, HLC Equity, has been around for over 70 years and is a multi-generational investment firm. They have a vast amount of experience investing in net-leased and retail assets and have just recently moved into the multifamily space. Currently HLC Equity manages over 20 assets worth a combined value $340 million.

Photo: Courtesy of RealCrowd